Moving agricultural production into Mexico is not as simple as is often assumed. Coachella-based Prime Time International has eight locations in Mexico that help the company supply bell peppers year-round. While labor costs can be significantly less, there are still other costs of production that can make it difficult to establish an agricultural business in Mexico. Managing Partner of Prime Time International, Mike Way said that it was not easy to get where they are now in establishing operations in Mexico.
“We have our own set of challenges there, whether you’re dealing with government issues, or cartel issues, or truck strikes, or whatever else it is down there. It’s not an easy place to do business. Building infrastructure in Mexico is very hard and very expensive. Anybody that tells you that they can open up tomorrow in Mexico and do it for half the cost they’re not telling you the truth,” said Way. “Granted, overall, apples to apples, it will be cheaper if you have your organization in Mexico, but it takes a lot of money to get it set up that way.”
Listen to the radio report below.